Answer to Question #245167 in Accounting for samantha

Question

I. Directions: Determine whether each of the following activities is operating, financing or

investing in nature.

1. Payments for purchases of inventories

2. Payment for current taxes

3. Sale of land owned by the entity with double revaluation surplus

4. Proceeds from long-term borrowings

5. Revenue from services

6. Payments for machineries bought from supplier

7. Repayment of long-term loans payable

8. Purchase of long-term investment from other company

9. Proceeds from sale of franchise

10. Payment of income tax expenses

Answer 1

1.Financing

2.Operating

3.Investing

4.Operating

5.Financing

6.Operating

7.Financing

8.Operating

9.Investing

10.Operating